Gokhale question doubt

[bhavya jain]

A budget deficit will increase GNP only if  
a) the government borrows money that otherwise would have been spent on investment
b) the government borrows from households money that otherwise would have been  lent to firms  
c) the government borrows money that otherwise would not have been spent at all  
d) the government spends the money abroad rather than at home
should the ans be b)..?

[Akshay Jain]

The ans is C

[Anjali]

I guess C !

[bhavya jain]

thanks a lot Akshay & Anjali, I was confused b/w b & c

[neha:)]

Someone pls explain why it should be C?

[lucy]

Shouldn't it be d?